Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Standard Price or...

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Question

Accounting

Sharp Company manufactures a product for which the followingstandards have been set:
Standard Quantity
or Hours Standard Price
or Rate Standard
Cost
Direct materials 3 feet $ 5 per foot $ 15
Direct labor ? hours ? per hour ?
During March, the company purchased direct materials at a costof $56,610, all of which were used in the production of 2,875 unitsof product. In addition, 4,700 direct labor-hours were worked onthe product during the month. The cost of this labor time was$37,600. The following variances have been computed for themonth:
Materials quantity variance $ 4,050 U
Labor spending variance $ 2,180
U
Labor efficiency variance $ 770
U
Required:
1. For direct materials:
a. Compute the actual cost per foot of materials for March.
6.00
b. Compute the price variance and the spending variance.
2. For direct labor:
a. Compute the standard direct labor rate per hour.
b. Compute the standard hours allowed for the month’sproduction.
c. Compute the standard hours allowed per unit of product.

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4.2 Ratings (780 Votes)

Ans 1 a Standard quantity Actual output Standard quantity per unit of output 2875 3 feet 8625 feet Materials quantity variance Standard quantity Actual quantity Standard price 4050 8625 Actual quantity 5 4050 5 8625 Actual quantity 810 8625 Actual See Answer

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Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Standard Price or...

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Accounting

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	Standard Quantity or Hours		Standard Price or Rate			Standard Cost
Direct materials	3	feet	$	5	per foot	$	15
Direct labor	?	hours		?	per hour		?


Materials quantity variance	$	4,050	U
Labor spending variance	$	2,180	U
Labor efficiency variance	$	770	U